Stocks of public sector banks, which have been facing a sharp decline for some time, may also see action in the next trading session. Amidst the ongoing decline in stocks due to pressure on valuation, NSE has announced that all government companies will come under the purview of measures set for additional surveillance. Till now, government companies were kept out of the purview of the exchange's surveillance conditions. SEBI said in its release that to provide stability to the market and protect the interests of investors, SEBI and the exchange have been taking pre-determined surveillance measures from time to time. Now public sector undertaking companies will also be brought under their purview.

What did NSE say

The stock market said in its release that under the current framework, public sector undertaking companies will also come under the purview of Long Term Additional Surveillance Measures (LT-ASM), Short Term Additional Surveillance Measures (ST-ASM), Graded Surveillance Measures (GSM), and Enhanced Surveillance Measures (ESM). According to the exchange, a meeting was held on Friday in this regard and this decision was taken. The revised framework will come into effect from 23 September 2024. According to the exchange, it has its own mechanism to keep a constant watch on the business in the interest of investors and steps are taken from time to time for monitoring. However, sometimes additional movement is seen in a stock, additional steps are implemented to keep an eye on it and control volatility. Such stocks are kept in ASM, GSM or EMM, different rules apply to them, the purpose of which is to identify any unexpected situation in time and take steps in the interests of investors. Sharp fluctuations in the stock of government companies There has been a sharp fluctuation in the stock of government companies in the recent past. Until some time ago, PSUs were at the forefront of the stock market rally. However, in the last 2 months, the stocks of government companies have fallen by 20 to 40 percent from their highest levels. At the same time, the Nifty PSE index has fallen by 10 percent from its peak and the market cap of the PSE index has slipped by Rs 4 lakh crore.